comparative analysis of us china relations during trump administration

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International Journal of Trend in Scientific Research and Development (IJTSRD) Volume 5 Issue 2, January-February 2021 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470 @ IJTSRD | Unique Paper ID – IJTSRD38540 | Volume – 5 | Issue – 2 | January-February 2021 Page 822 Comparative Analysis of US- China Relations during Trump Administration Uchkun Dustov Senior Lecturer, PhD in Political Science, The University of World Economy and Diplomacy, Tashkent, Uzbekistan ABSTRACT This article examines crucial issues in the US-Chinese relations during the Trump administration considering the issues like Trade war and geopolitical situation in Asia-Pacific region. This research explores the main directions of Sino-American relations in the period of presidency of Donald Trump, as well as the recent trends and perspectives on cooperation between the two states. The following conclusions are coming to end: First, the U.S. government can continue, in the nearest future, to put pressure on China on issues such as human rights, civil society development, and Internet freedom. This pressure will be reflected in China, especially among educated youth and the growing middle class. The preservation and consolidation of American positions in the waters of the Pacific and Indian Oceans is forcing Beijing to focus on the resource and transit potential of mainland Eurasia (One Belt-One Road), highlighting the growing importance of Russia and Central Asia for China’s strategy. Second, the U.S. administration’s attitude toward China remains moderate, despite occasional changes. The tendency for bilateral dialogue and mutually beneficial cooperation prevails. Third, there was unequivocal support from both houses of Congress for the Trump administration’s new tough demands on China. Existing problems between the parties, in particular, China’s close cooperation with Russia, further complicate the situation to the detriment of China. Fourth, the positive development of bilateral relations will contribute to ensuring international political, economic, environmental stability and global security. Fifth, China’s economic development and growing international position are intensifying competition in bilateral relations not only in the Asia-Pacific region, but also in the rest of regions of the Globe. KEYWORDS: Sino-American relations, US China policy, pushback strategy, trade war, turbulence, security issues How to cite this paper: Uchkun Dustov "Comparative Analysis of US- China Relations during Trump Administration" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-2, February 2021, pp.822-828, URL: www.ijtsrd.com/papers/ijtsrd38540.pdf Copyright © 2021 by author(s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http://creativecommons.org/licenses/by/4.0) INRODUCTION At the current phase of development of international relations, one of the most pressing issues of the new world order is the Sino-American vector. The relationship between the United States and the People’s Republic of China has a direct impact on economic, military-political and cultural development on a global scale. Therefore, the development of the Sino-American relations is a matter of international attention and concern because the solution to a large number of global issues in the twenty-first century depends on the future development of relations between China and US. Donald Trump’s coming to power in 2017, the U.S. government response to Chinese calls had strengthened, but by 2018, this trajectory had somewhat changed. During the 115th Congress (2017-2018), thanks to the close cooperation of Democrats and Republicans, the age-old conflict in the U.S. Congress’s attitude toward China was resolved. Despite particularly biased attitudes, the Chinese issue has become the only topic that exemplifies the unity between the U.S. Congress and the Government. According to prof. Robert Sutter (2019), the future of U.S. relations with China will depend on the ability to cover the costs of fighting China, to reassure the public that there is a need for a conflict with China, and to the Trump administration’s policy toward China. By covering this topic, information will be provided to the public to assess the evolution, duration, causes and consequences of the drastic change in the policy pursued by the U.S. government towards China. The number of U.S. demands on China is growing. Republicans in Congress and the party’s 2016 election platform have strongly condemned the Chinese’s actions. Many issues concerning China were highlighted during the presidential campaign, but in general they remained secondary to other issues such as extremism and the Russian issue. The political mood in China has changed dramatically since President Trump received a congratulatory message from Taiwanese President Tsai In-wen in December 2016. This policy was supported by the Republican Party. The party’s 2016 platform put forward ideas such as supporting Taiwan as well as curbing China. In response, the Chinese side has complained that Trump has condemned China’s unfavorable economic policies and military posts in the South China Sea. IJTSRD38540

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This article examines crucial issues in the US Chinese relations during the Trump administration considering the issues like Trade war and geopolitical situation in Asia Pacific region. This research explores the main directions of Sino American relations in the period of presidency of Donald Trump, as well as the recent trends and perspectives on cooperation between the two states. The following conclusions are coming to end First, the U.S. government can continue, in the nearest future, to put pressure on China on issues such as human rights, civil society development, and Internet freedom. This pressure will be reflected in China, especially among educated youth and the growing middle class. The preservation and consolidation of American positions in the waters of the Pacific and Indian Oceans is forcing Beijing to focus on the resource and transit potential of mainland Eurasia One Belt One Road , highlighting the growing importance of Russia and Central Asia for China’s strategy. Second, the U.S. administration’s attitude toward China remains moderate, despite occasional changes. The tendency for bilateral dialogue and mutually beneficial cooperation prevails. Third, there was unequivocal support from both houses of Congress for the Trump administration’s new tough demands on China. Existing problems between the parties, in particular, China’s close cooperation with Russia, further complicate the situation to the detriment of China. Fourth, the positive development of bilateral relations will contribute to ensuring international political, economic, environmental stability and global security. Fifth, China’s economic development and growing international position are intensifying competition in bilateral relations not only in the Asia Pacific region, but also in the rest of regions of the Globe. Uchkun Dustov "Comparative Analysis of US- China Relations during Trump Administration" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-2 , February 2021, URL: https://www.ijtsrd.com/papers/ijtsrd38540.pdf Paper Url: https://www.ijtsrd.com/humanities-and-the-arts/political-science/38540/comparative-analysis-of-us-china-relations-during-trump-administration/uchkun-dustov

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  • International Journal of Trend in Scientific Research and Development (IJTSRD) Volume 5 Issue 2, January-February 2021 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470

    @ IJTSRD | Unique Paper ID – IJTSRD38540 | Volume – 5 | Issue – 2 | January-February 2021 Page 822

    Comparative Analysis of US- China

    Relations during Trump Administration

    Uchkun Dustov

    Senior Lecturer, PhD in Political Science,

    The University of World Economy and Diplomacy, Tashkent, Uzbekistan

    ABSTRACT

    This article examines crucial issues in the US-Chinese relations during the Trump administration considering the issues like Trade war and geopolitical situation in Asia-Pacific region. This research explores the main directions of Sino-American relations in the period of presidency of Donald Trump, as well as the recent trends and perspectives on cooperation between the two states. The following conclusions are coming to end: First, the U.S. government can continue, in the nearest future, to put pressure on China on issues such as human rights, civil society development, and Internet freedom. This pressure will be reflected in China, especially among educated youth and the growing middle class. The preservation and consolidation of American positions in the waters of the Pacific and Indian Oceans is forcing Beijing to focus on the resource and transit potential of mainland Eurasia (One Belt-One Road), highlighting the growing importance of Russia and Central Asia for China’s strategy. Second, the U.S. administration’s attitude toward China remains moderate, despite occasional changes. The tendency for bilateral dialogue and mutually beneficial cooperation prevails. Third, there was unequivocal support from both houses of Congress for the Trump administration’s new tough demands on China. Existing problems between the parties, in particular, China’s close cooperation with Russia, further complicate the situation to the detriment of China. Fourth, the positive development of bilateral relations will contribute to ensuring international political, economic, environmental stability and global security. Fifth, China’s economic development and growing international position are intensifying competition in bilateral relations not only in the Asia-Pacific region, but also in the rest of regions of the Globe.

    KEYWORDS: Sino-American relations, US China policy, pushback strategy, trade war, turbulence, security issues

    How to cite this paper: Uchkun Dustov "Comparative Analysis of US- China Relations during Trump Administration" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-2, February 2021, pp.822-828, URL: www.ijtsrd.com/papers/ijtsrd38540.pdf Copyright © 2021 by author(s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http://creativecommons.org/licenses/by/4.0)

    INRODUCTION

    At the current phase of development of international relations, one of the most pressing issues of the new world order is the Sino-American vector. The relationship between the United States and the People’s Republic of China has a direct impact on economic, military-political and cultural development on a global scale. Therefore, the development of the Sino-American relations is a matter of international attention and concern because the solution to a large number of global issues in the twenty-first century depends on the future development of relations between China and US.

    Donald Trump’s coming to power in 2017, the U.S. government response to Chinese calls had strengthened, but by 2018, this trajectory had somewhat changed. During the 115th Congress (2017-2018), thanks to the close cooperation of Democrats and Republicans, the age-old conflict in the U.S. Congress’s attitude toward China was resolved. Despite particularly biased attitudes, the Chinese issue has become the only topic that exemplifies the unity between the U.S. Congress and the Government.

    According to prof. Robert Sutter (2019), the future of U.S. relations with China will depend on the ability to cover the

    costs of fighting China, to reassure the public that there is a need for a conflict with China, and to the Trump administration’s policy toward China. By covering this topic, information will be provided to the public to assess the evolution, duration, causes and consequences of the drastic change in the policy pursued by the U.S. government towards China.

    The number of U.S. demands on China is growing. Republicans in Congress and the party’s 2016 election platform have strongly condemned the Chinese’s actions. Many issues concerning China were highlighted during the presidential campaign, but in general they remained secondary to other issues such as extremism and the Russian issue.

    The political mood in China has changed dramatically since President Trump received a congratulatory message from Taiwanese President Tsai In-wen in December 2016. This policy was supported by the Republican Party. The party’s 2016 platform put forward ideas such as supporting Taiwan as well as curbing China. In response, the Chinese side has complained that Trump has condemned China’s unfavorable economic policies and military posts in the South China Sea.

    IJTSRD38540

  • International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470

    @ IJTSRD | Unique Paper ID – IJTSRD38540 | Volume – 5 | Issue – 2 | January-February 2021 Page 823

    The Chinese side has constantly raised issues with the United States on the need to support the “One China” position and not to intensify ties with Taiwan. President Trump eventually agreed to support the “One China” policy from an American perspective.

    President Trump held an informal summit between the two heads of state on April 7, 2017 at the Mar-a-Lago resort (Trump’s private property) in Florida. He had met with Xi Jinping ahead of the upcoming G-20 summit to discuss four high-level meeting mechanisms.

    Later, the two leaders met again on July 7-8, 2017 in Hamburg (Germany) as part of the G-20 summit. In November of that year, the two leaders had a telephone conversation on the North Korean issue and discussed other issues that needed to be agreed before the U.S. president’s scheduled visit to Beijing. Despite the problems between the two countries, both leaders said they valued their personal relationship [1].

    Following the Florida summit, the United States stepped up political pressure on China in an effort to halt North Korea’s nuclear program. These efforts have shattered arms sales to Taiwan, disputes in the South China Sea, and other U.S.-initiated activities. Ahead of comprehensive US-China economic talks in July 2017, the two countries reached a mutual agreement on a 100-day action plan [2].

    In June 2017, President Trump stepped up arms sales and freedom of navigation exercises in Taiwan as he became dissatisfied with China’s actions in North Korea. During the economic talks in July of that year, no agreement was reached with China that could lead to a reduction in the bilateral trade deficit, and the event ended in failure.

    The 45th President of the United States, D.Trump, paid an official visit to Beijing in 2017 (November 9-10). For his part, the Chinese president said that his country would “never close the doors to the openness of the national economy” "create all the necessary conditions for the successful operation of foreign business," and maintain "firm commitment to reform." Xi Jinping stressed that the current and potential contradictions in the framework of trade and economic cooperation between the two largest economies in the world - China and the United States - can be resolved through dialogue.

    One of the important topics in the talks between Trump and Xi Jinping was the DPRK’s nuclear missile program and the situation on the Korean Peninsula. According to Trump, Beijing is capable of “depriving Pyongyang of nuclear weapons” in a short time and without special action. He stressed that the problem was “the biggest threat to global security” and expressed confidence that the PRC president would “take serious action” on the issue, adding that the DPRK problem could be “resolved”. As a result, at this meeting, the Chinese government and the U.S. government reached an agreement to strengthen ties and strengthen coordination on the Korean Peninsula issue.

    According to the China Daily, “Although differences between China and the United States did not immediately evaporate, the most important outcome of the talks in Beijing was the constructive approach shown by the two leaders. Disagreements between the two countries are particularly over trade and the DPRK’s nuclear program, but these issues are complex and unlikely to be resolved quickly. At the same time, both sides are confident that the problems can be

    resolved. The two leaders need to listen to each other and talk to each other, as the readiness was evident in their public speeches, and as Trump suggested, China and the U.S. are capable of doing “great things” together. Obviously, China is ready for this approach, especially given Xi Jinping’s statement that “The gap in the Pacific is large enough and capable of accommodating both countries. Although there are disagreements between Italy and the United States that need to be resolved, they still have boundaries, but the opportunities for development are endless"[3].

    According to The Washington Post, “President Trump’s two-day visit to China drew attention as the leaders of the world’s two largest economies exchanged views on a variety of issues - North Korea and cyber security in trade - amid growing problems in the Asia-Pacific region [3].

    According to reports from U.S. administration meetings, President Trump has imposed unilateral sanctions against Chinese trade practices, rejecting the compromise measures proposed by China. Prior to his 2017 trip to China, the administration did not take drastic economic measures, but these measures later caused other problems in 2018[4].

    During this period, the U.S. Congress became preoccupied with trying to end the Obama administration’s health care program and repeal an effective tax incentive plan. Congress has long opposed North Korea. That’s why Congress has called on the Trump administration to put strong pressure on China to force North Korea to give up nuclear testing.

    The Trump administration’s National Security Strategy of December 2017 and the National Defense Strategy of January 2018 (in a manner not used in such documents since the Nixon era) have drawn serious criticism of China. In particular, the PRC has been described as a “wild rival” and is considered the greatest threat to American national security. It was noted that China’s military might and drastic actions in the Asia-Pacific region threaten the sovereignty of leading countries in the field of high technology, which is considered important to support the international leadership of the United States[5].

    In the relationship between Congress and Government representatives, this issue has been raised and added to the list of long-standing protests against China, which is important. U.S. Trade Representative Robert Lighthizer has openly stated that China is trying to take advantage of the U.S. unfairly. He described such operations as a "threat to the United States." FBI Director Christopher Urey at the time accused the U.S. Congress of another important issue - China’s open and covert intervention practices, including its espionage activities in the United States. He has repeatedly said that it is a very difficult task to resist the well-thought-out intentions of the PRC[6].

    The following approaches are used in the Congress’s tough policy towards China: � Extensive discussions on Chinese policy affecting

    American interests[7]; � Development of separate draft laws on specific

    issues[8]; � Sending warnings and action[9].

    The pushback strategy

    In May 2018, a bipartisan group of 27 leading senators, led by Senate majority leader John Cornyn and Senate minority (Democrat) leader Charles Schumer, made strong demands on China’s leading economic advisers against technological

  • International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470

    @ IJTSRD | Unique Paper ID – IJTSRD38540 | Volume – 5 | Issue – 2 | January-February 2021 Page 824

    inventions and other ambitions. Another petition, written by 12 senators, was sent to senior officials in the Trump administration, calling for protection from China[10].

    Despite Chinese opposition, the Trump administration has taken relatively small steps to provide greater assistance to Taiwan. However, after a telephone conversation with the Taiwanese president in December 2016, President Trump realized that he would jeopardize cooperation on North Korea by taking concrete steps on Taiwan policy, which is one of China’s top priorities.

    Jackson Dale, deputy editor of the Washington Post, said the president did not include high-ranking officials critical of China in the list of U.S. officials who attended the opening of the new unofficial U.S. embassy in Taipei. The opening ceremony of the office in Taipei coincided with Trump’s June 12, 2018 summit with the North Korean leader in Singapore, where he did not want China to worry on these important days[11].

    The FY 2019 National Defense Powers Act, one of the most important foreign policy laws of 2018, also includes measures to be taken against China [12]. It also contains allegations that China is doing covert and vicious activities that harm US interests. The law sets out the US government’s strategy.

    � Development of a 5-year plan by the Department of Defense to strengthen the U.S. and its allies and partnership in the Indo-Pacific region;

    � Expansion of the maritime security scope covering Southeast Asia to control the Indian Ocean region;

    � Develop a US strategy to strengthen military ties with India;

    � Expansion of the annual report to the Chinese Congress on military and security issues;

    � The Confucius Institutes have been asked to limit the Department of Defense’s resources for Chinese language programs.

    The law reaffirmed some of America’s long-standing obligations to Taiwan. According to it, the United States has the opportunity to lead in areas such as arms sales, defense and personnel exchanges, education. The law also stipulates that Taiwan’s military and reserve forces will be fully evaluated by the Ministry of Defense within a year, including commenting on U.S. efforts to assist Taiwan and U.S. plans to implement these recommendations.

    This Act sets out specific procedures for modernizing, strengthening, and expanding the activities of the Committee on Foreign Investment in the United States, in order to more effectively protect against threats to U.S. national security. In turn, it reflected important reforms in U.S. export controls to protect U.S.-created technology and intellectual property from China and other potential competitors.

    Although Chinese officials in charge of U.S.-China relations know that Trump’s foreign policy is radically different from President Obama’s foreign policy, they believe that any controversial talks with Trump are more easily negotiated and the U.S. do not reject a "deal" that could offer relatively few economic and other benefits to China. According to Robert Sutter, they were not well prepared for the 2018 sanctions against China[13].

    Other drastic measures not applied to China in U.S. practice to date have been carried out through various U.S. agencies. Sanctions have been imposed on Chinese companies and officials for buying weapons from Russia in violation of U.S. sanctions against Russia. Later, there was the incident of a Chinese security officer who was involved in espionage by the FBI to steal American military technology. The plans being considered in the framework of Xi Jinping’s growing prestigious "One belt, one road" project were not left out.

    The United States has objected to the World Bank lending to China about $ 2 billion a year despite its high economic potential and the International Monetary Fund providing large loans for Chinese projects in Pakistan [14].

    In October 2018, the Trump administration pulled the U.S. out of a long- and medium-range ballistic missile deal to counter China in the Pacific.

    As of November 2018, the U.S. Department of Justice has introduced a project called “New Initiative” to Combat China’s Economic Spying. Meanwhile, U.S. Vice President Mike Pence sharply criticized China’s economic and military operations, speaking at multilateral high-level summits in Asian countries, and said drastic measures would be taken by the U.S. administration.

    An unfortunate situation occurred during the meeting of Donald Trump and Xi Jinping on December 1, 2018 in the framework of the G-20 summit in Argentina. At the time of the summit, Vancouver officials accused Huawei president Ren Zhengfei and his daughter-in-law manager Meng Wanzhou of failing to comply with U.S. sanctions against Iran, and his arrest complicated the situation.

    “Trade Ware”

    President Trump has been imposing various trade restrictions on China since coming to power. This, in turn, has led to an appropriate "response" from the PRC. At the G-20 summit in Argentina, President Trump and President Xi Jinping reached a partial agreement on a "trade war" to address the issue. Consequently, the Summit agreed to suspend US sanctions against China.

    Chinese President Xi Jinping and US President D. Trump discussed bilateral relations during a telephone conversation on December 29, 2018. A “big result” was expected as a result of Trump’s serious preparations for formal talks on economic disparities in January 2019. The U.S. negotiating team was led by U.S. Trade Representative Robert Lighthizer (known for his tough stance on China) and his aides. The 116th Congress, among other laws that could be reinstated, proposed sanctions against Uighur Muslims in northwestern China, their crackdown on Tibetans, and Chinese high-tech firms violating U.S. international sanctions[15].

    According to Shannon Tiezzi, Editor-in-Chief of The Diplomat (Asia-Pacific Leading Edition), the talks are a dialogue on diplomatic and security issues, comprehensive economic dialogue, law enforcement and cybersecurity. However, during these meetings, the parties failed to achieve effective results. Rather than concealing information about these talks from the public, the government sharply criticized China’s actions and “offended” the Chinese government among the public[16].

    In addition, many of the joint U.S.-China programs supported by a number of U.S. and Chinese government agencies were considered by the Trump administration to determine

  • International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470

    @ IJTSRD | Unique Paper ID – IJTSRD38540 | Volume – 5 | Issue – 2 | January-February 2021 Page 825

    whether they were in America’s best interests. In the recent past, U.S. officials have turned a blind eye to various disagreements with China and tried to maintain agreements between them, while government leaders are now trying to protect their own interests.

    An exception to these trends could be Sino-US cooperation on drug trafficking. Fentanyl epidemic drug is mainly produced in China and consumed in the United States. U.S. Ambassador to China (since July 12, 2017) Terry Edward Branstad noted that cooperation to prevent illegal trade in this substance is “one of the best aspects of bilateral relations”[17].

    The Trump administration has achieved some positive results by applying economic pressure on allies and partners to reach new trade deals that are more beneficial to the United States. Later, the U.S. began urging them to cooperate in the fight against China’s ambitions. In particular, new trade agreements signed with Canada and Mexico have served to reduce free trade with China. Similarly, the U.S. has held bilateral trade talks with South Korea and Japan and signed new trade agreements. Eventually, the U.S. achieved results that were fully in line with its interests, and then, in addition, reached partial agreements with the European Union.

    China’s economic growth and ways of doing business are jeopardizing diplomatic, trade and technological ties, according to the Financial Times[18].

    The expansion of such cooperation by the United States will serve as a comprehensive "soft power" against China’s further development. With funding from Congress, the U.S. military can implement the Trump administration’s national security and national defense strategy ideas and ensure that China’s claims, especially in the South China Sea, are met with response. This, in turn, will allow China to use modern fighter jets and other military forces to counter its claims by bypassing UN maritime laws.

    On January 15, 2020, a new trade and economic agreement for 2020-2021 was signed between the U.S. government and the Chinese government in Washington. The agreement is a major document consisting of 8 chapters, 67 articles, 155 sub-articles and 17 appendices, aimed at balancing exports and imports by reducing the US trade deficit over the past 2 years[19].

    As China took advantage of the weaknesses of U.S. shale producers in the context of the global economic crisis and quickly began to buy mining companies, Western technology and manufacturing began to fall into the hands of China. "China is consuming us. We need to protect our heritage," explained John Soyers, a former director of British intelligence[20].

    The shale oil industry, which is in danger of disappearing altogether or can be maintained through refinancing at the expense of foreign investment, continues to operate under the control of the Chinese government. Of course, the companies acquired make up only a fraction of the American shale industry, but the key issue here is China’s ability to regulate the factors that affect the dollar’s exchange rate around the world. Consequently, the dominance of the U.S. currency today remains directly dependent on the oil and gas industry. China aimed to swallow the U.S. dollar from within[20].

    Security issues

    The CoVid-19 pandemic, which erupted in Wuhan (China) in December 2019 and then spread around the world, also had an impact on bilateral relations. As of August 6, 2020, 88,460 people in China were infected with the virus, of which 81,592 were cured and 4,680 died, while a total of 4,883,882 people in the United States were infected and 1,598,624 recovered and 160,104 died. The comparative comparison of these figures has caused serious criticism from the U.S. government. In particular, the Chinese leadership is accused of keeping the initial information secret, artificially producing the virus and allowing it to leak and spread from the laboratory. Chinese officials, for their part, say such allegations are unfounded. Time will tell how close this is to reality, of course.

    During his latest visit to the UK, Pompeo called for the formation of a coalition to exert political pressure on China. He also noted that China had “bought” the WHO leader and that many Britons had died of CoVid-19 infection as a result of these political conspiracies [21].

    Under Trump’s decision, the U.S. Treasury Department’s development of regulations to place securities on U.S. stock exchanges and tighten requirements for Chinese companies to sell them was a way of punishing China for the United States. Trump noted that for decades, Chinese firms have made good use of American stock exchanges and borrowed large sums of money from them. At the same time, PRC administrators have not allowed companies to comply with mandatory investor protection requirements for competitors from the United States.

    Commenting on the decision, Secretary of State Mike Pompeo said at a time when the conflict with Chinese company Luck in Coffee Inc. was escalating, NASDAQ noted that it was independently tightening its initial auction requirements. He said such actions should set an example for U.S. stock exchanges and other countries around the world. He also warned that pension funds, which manage the money of government officials, are prohibited from being invested in Chinese securities.

    Meanwhile, more than 150 Chinese companies with a total value of more than $1.2 trillion are traded on U.S. stock exchanges. Trump’s initiative, which emerged amid a cooling of relations between the world’s two largest economies, led to the ineffective completion of the first phase of the Trade Agreement[22].

    The purpose of the law "On improving the legal system and law enforcement mechanism of Hong Kong" adopted by the PRC is to prevent separatism, terrorism, sabotage of state power and collusion with foreign anti-Chinese forces. Under the law, the above crimes are punishable by severe penalties, including life imprisonment. According to the document, the independence of Hong Kong law enforcement officers will be restricted, the central authorities of the PRC will conduct investigative actions in Hong Kong, and offices of Chinese state security agencies will be opened in the city.

    The law gives the Chinese leadership broad powers against terrorism, separatism, external influence and undermining China’s power in the autonomous region[23].

    Chinese President Xi Jinping has signed a law marking the 23rd anniversary of Hong Kong’s accession to China. On July 1, 1997, the United Kingdom formally transferred its colony to Chinese jurisdiction. Now, "against the background of the

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    @ IJTSRD | Unique Paper ID – IJTSRD38540 | Volume – 5 | Issue – 2 | January-February 2021 Page 826

    national security threats facing Hong Kong, the adoption of a national security law nationwide was urgent and necessary," said Mayor Kerry Lam[24].

    The most recent protests took place in May 2020 and were directly attributed to the National Security Act. The opposition is currently inactive, but the U.S. remains the main defender of Hong Kong’s freedom, which has a population of 7.5 million.

    In July 2020, the United States imposed Hong Kong sanctions against China. But the punishment was private in nature and applied to Chinese officials involved in "destroying autonomy." Importantly, on July 20, the United States announced that it would stop exporting U.S. military products and innovative technologies to Hong Kong. Until now, China has had guaranteed access to these U.S. technologies through its “special zone”.

    For China, Hong Kong remains a demonstration of integration under the “one country - two systems” principle, according to Professor Alexander Shpunt, since Deng Xiaoping developed this principle in 1980, it has been aimed at uniting not only Hong Kong and Macao but also Taiwan. The special status granted to Hong Kong in 1997 will gradually be equated with the rest of mainland China. "In this regard, Beijing’s actions are very consistent and cautious. Illegal crimes in Hong Kong should be tried in Chinese courts," he said. The norm has provoked outrage, the expert predicts.

    According to Ostrovsky, the importance of Hong Kong for China is declining today. If in 1997, when the city returned to China, its share in the country’s gross domestic product was 20 percent, today it is 2 percent. "In Greater China, free trade zones, free economic zones and modern technology ports have emerged. Many Hong Congress are moving to neighboring Shenzhen because there is more space and wages are at least adequate." It serves for transit from China to abroad"[24].

    In response to the passage of this law, the adoption of the Hong Kong Act in the United States and the abolition of U.S. preferences for this particular region in accordance with it worsened bilateral relations.

    Hong Kong is the preservation of capitalism and freedom for a communist country in accordance with the Western model. Therefore, about 60 percent of foreign direct investment and more than 70 percent of capital comes to China through Hong Kong.

    Hong Kong has different laws, political system, passport and even language. An independent judiciary, freedom of speech, religion and assembly are guaranteed. It has its own (freely convertible) currency, its own exchange, independent trade policy and financial order. Hong Kong is an equal member of the World Trade Organization.

    If a law extending China’s intelligence rights comes into force, the government of British Prime Minister Boris Johnson has promised to grant British citizenship to Hong Kong residents. The British prime minister called it a "sign of goodwill". He wrote in the Times that Britain “can’t just turn around”, “it will do its duty” and it will do it “of its own free will”. In fact, this means that the government of the country must repeal its laws and pass counter-laws[25].

    China could have put an end to the situation in Hong Kong for a long time, but the consequences would run counter to

    national interests. In particular, on the one hand, there was the difficulty of pacifying a dissident society and, on the other hand, the risk of losing Western investment.

    Shortly afterwards, on July 21, 2020, the U.S. decided to close the Chinese consulate in Houston for three days, accusing Chinese diplomats of engaging in a “subversive movement”, aiding economic espionage and attempting to steal scientific research (the CoVid-19 vaccine). In response, consular officials burned documents in the building. they began. The Trump administration’s actions against China are taking a sharp turn.

    The move could be linked to President Trump’s elections campaign strategists, concerned about his pandemic failures, and his supporters advocating a comprehensive fight against China.

    In response, the Chinese side decided to close the US consulate in Shengdu, China[26].

    The Trump administration aimed to temporarily maintain the geopolitical status quo in Asia by slowing down or halting the U.S.’s negative shift in the balance of power between the U.S. and China. The acceleration of U.S. economic development coincided with a significant slowdown in the Chinese economy and the accumulation of structural problems in the PRC. The constant economic pressure of the US on the PRC is paying off, the U.S. trade deficit with China is significantly reduced, Trump has achieved positive results in other areas (exchange rates, non-tariff restrictions, intellectual property, etc.). At the same time, the military-strategic balance between the two countries has not shifted sharply in favor of China. In response to the steady growth of China’s military budget, the U.S. is making large-scale efforts to modernize its armed forces, including the U.S. Navy.

    Today, it can be said that most Asian countries have managed to find a balance in the process of regional economic development and domestic policy, although there is no guarantee that it will be maintained in the near future.

    Currently, the level of military-political conflict in the region as a whole is declining. In particular, the DPRK is freezing its nuclear and ballistic programs, and the significance of the conflict against North Korea is gradually diminishing. The unresolved territorial disputes in the South China Sea will not lead to acute political crises in Southeast Asia. The economic integration of the countries of the region is deepening and the growing middle class in most countries of the region is becoming the basis of political stability in Asia. The United States is returning to the idea of joining the Trans-Pacific Partnership, given the new bilateral trade and economic agreements signed with partners in the Asia-Pacific region. The comprehensive regional economic partnership funded by the PRC is stalled due to multilateral and bilateral disputes on certain issues. Political extremism and international terrorism are declining in Asia, the arms race between Asia’s leading countries is slowing down, and competition between economic and social development models is intensifying[27].

    This means that the U.S. and its allies will maintain and further strengthen their influence in Asia. Freedom of navigation and freedom of movement of the Air Force will be preserved in the waters of the Pacific and Indian Oceans. While the U.S.’s traditional allies remain loyal to the United States, they are rapidly developing economic cooperation

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    with China. U.S.-China cooperation continues to develop successfully in the framework of the G-2 format, which plays the role of a major partner that defines the basic rules of the United States. Even the signing of U.S.-China nuclear arms control agreements is unlikely, although America’s dominance in this area will play a decisive role. Because the United States ranks first in terms of strategic aviation and nuclear strategic forces at sea.

    The new conflict between China and the United States began with Trump signing a law imposing sanctions on Chinese officials over Uighur oppression in Xinjiang. In response, China has imposed a series of sanctions on U.S. officials. A Chinese Foreign Ministry spokesman called the U.S. human rights allegations "the biggest lie of the century." He advised Trump to focus on racial issues in his country.

    In an interview with Xinhua News Agency on August 5, 2020, Chinese Foreign Minister Wang Yi said, “Cooperation between China and the United States has never been at the mercy of one side or the benefit of the other, and both countries have benefited greatly from cooperation. and so it is wrong to talk about who lost and who made easy money. Over time, China and the United States have already become a community of common interests due to the advantages of the parties and the complementarity of mutually beneficial cooperation. China’s rapid development is the result of a policy of openness and cooperation with the outside world, including the United States, while China’s development has given a strong impetus to sustainable economic growth for the United States and other countries and become a major market for them. If the cooperation between China and the United States had been so unfair and unbalanced, it would not have lasted for decades. Globalization and free trade, on the one hand, have brought dividends for development and, on the other hand, have created new contradictions and challenges in the areas of economics and distribution. These problems need to be solved through self-correction ... There is no need to use different methods to blame others, for example, there is no need to try to solve problems by “breaking ties”[28].

    On August 7, 2020, US President Trump signed the decrees “On Combating the Threat of TikTok” and “On Combating the Threat of WeChat” concerning the activities of social networks owned by Byte Dance and Tencent. Under these laws, the U.S. jurisdiction sets a deadline of September 15, 2020 to terminate transactions with these app companies. It was noted that the adoption of these laws was due to the following: TikTok and WeChat applications developed by Chinese companies pose a serious threat to US national security, foreign policy and economy, and may collect and track personal information about their users.

    CONCLUSION

    Based on the above considerations, the following conclusions can be drawn:

    First, the U. S. government can continue, in the nearest future, to put pressure on China on issues such as human rights, civil society development, and Internet freedom. This pressure will be reflected in China, especially among educated youth and the growing middle class. The preservation and consolidation of American positions in the waters of the Pacific and Indian Oceans is forcing Beijing to focus on the resource and transit potential of mainland Eurasia (One Belt-One Road), highlighting the growing importance of Russia and Central Asia for China’s strategy.

    Second, the U.S. administration’s attitude toward China remains moderate, despite occasional changes. The tendency for bilateral dialogue and mutually beneficial cooperation prevails.

    Third, there was unequivocal support from both houses of Congress for the Trump administration’s new tough demands on China. Existing problems between the parties, in particular, China’s close cooperation with Russia, further complicate the situation to the detriment of China.

    Fourth, the positive development of bilateral relations will contribute to ensuring international political, economic, environmental stability and global security.

    Fifth, China’s economic development and growing international position are intensifying competition in bilateral relations not only in the Asia-Pacific region, but also in the rest of regions of the Globe.

    In overall it can be said that both countries China and US are acting in a “magnet pole” where factors like trade war, security issues and rivalry development between two countries more often influence in developing bilateral and multilateral relations as well as in world politics.

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